PC sales boom,so does Microsoft’s revenue

The continuing boom in personal computer and server sales drove Microsoft’s revenues up by 15 per cent in the last quarter while its cash mountain swelled to more than $60bn, according to figures released after the market closed on Thursday.

However, disappointment about the effect on its future profits from paying out $32bn via a special one-off dividend – which will rob the software giant of interest income – sent its shares down by 5 per cent in after-hours trading. Microsoft also said the yield on its remaining investments would fall next year after it shifted its cash into shorter-dated securities.

The company’s changing approach to how it manages its investment hoard also held down what would otherwise have been a banner quarter for operating earnings in the three months to the end of June.The company also forecast revenue growth for its next financial year of about 4.3-5.3 per cent, broadly in line with most analysts’ forecasts.

News source: Financial Times


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